City pays $200,000 severance in latest city manager exit

MILPTAS » Milpitas is quietly forking over nearly $200,000 in severance pay to former city manager Julie Edmonds-Mares, who announced her resignation last month, according to records obtained by this news organization.

Although city officials publicly portrayed her departure as a mutual decision with the City Council, the payout suggests Edmonds-Mares may have been forced out.

She could not be reached to comment for this story and last month declined through a city spokeswoman to speak about her resignation.

Edmonds-Mares has received $198,868 — $150,145 in severance for six months’ pay from June 19 to Dec. 19 this year, $32,706 in compensation for accrued vacation time, $10,510 toward retirement and the rest in medical and other health coverage payments. Those figures were listed in city documents provided to this news organization in response to a public records request, and confirmed by a city spokeswoman.

Her contract with the city states that if her employment ends while she is “still willing and able to perform the duties of city manager, where such termination is without cause,” she’s entitled to receive “compensation equal to six (6) months salary and benefits.

“Upon termination, (Edmonds-Mares) shall also be compensated for all accrued vacation leave,” the contract says.

Her contract doesn’t call for any severance pay if she voluntarily resigns from her position.

Although she received severance pay, the city’s press release last month said Edmonds-Mares was resigning, not being fired or terminated.

She was hired in early 2018 to replace embattled former city manager Tom Williams, who resigned in September 2017 after being placed on paid administrative leave. Edmonds-Mares earned a total of $361,336 in salary and benefits in 2018, the city spokeswoman said.

At its June 4 meeting, the city council appointed Deputy City Manager Steve McHarris to serve as interim city manager.

McHarris was a planning director when he left the city in 2015 after accusing Williams of creating “an environment of fear.” He returned to Milpitas last year when Edmonds-Mares hired him back.

Why the council wanted Edmonds-Mares to leave is unclear. Mayor Rich Tran alluded to a change in the council’s makeup after the November 2018 election as a possible reason.

“Many community members are asking what changed,” he said last month. “I think it’s clear that last November, the city council made a transition that ultimately is apparent at city hall.”

Councilwoman Marsha Grilli and Councilman Garry Barbadillo, who were on the council in early 2018 when Edmonds-Mares was hired to lead the city, both lost their reelection bids and were replaced by Vice Mayor Karina Dominguez and Councilwoman Carmen Montano.

Dominguez declined to comment on Edmonds-Mares’ departure, and Montano was similarly tightlipped when asked for comment.

“Sorry, no comment,” Montano said in a text last week. “She resigned on good terms.”

Councilman Anthony Phan said last week he couldn’t speak to the specific reasons Edmonds-Mares stepped down, but added he’s confident in McHarris.

“We want executive leadership to excel beyond high quality standards, and that’s a really tough demand to meet sometimes. It’s a tough job and I am very glad that Steve McHar-ris has agreed to step in and serve the city,” he said.

Despite the nearly $200,000 price tag associated with the change, Phan said it was the right decision for the city.

“I don’t think we can put a price tag on good governance,” he said.

“Whoever it is that takes the mantle in the long term, the city is looking to invest in leadership. I see all this as steps that we need to take toward investing in the leadership of our city.”

McHarris is the third city official to serve as interim city manager since Williams was placed on leave.

Former police chief Steve Pangelinan took over from late May 2017 until he retired in January and Dianne Thompson, a former city manager fired in Arroyo Grande, assumed the position until Edmonds-Mares arrived.

It’s unclear how long McHarris will serve as interim city manager and when the city will begin the process of selecting a new, permanent manager.